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Down to Earth IFIs Factsheet Series

No 9, October 2000



IFIs in Indonesia

This series of monthly factsheets on International Financial Institutions (IFIs) will include information on the World Bank Group, the International Monetary Fund (IMF) and the Asian Development Bank (ADB), focussing on their involvement in Indonesia.


Focus on current Asian Development Bank lending to Indonesia


INTRODUCTION

This Factsheet takes a closer look at ADB lending to Indonesia. In the October 2000 CGI the ADB pledged to lend US$1.3bn. Approximately similar amounts have been lent in recent years. For introductory notes on the ADB see Factsheet 3

It focuses on selected loans that have potential impacts on the Environment and Natural Resource Management. The full current list of ADB Loans to GoI is available at http://www.adb.org/Documents/Profiles/default.asp?key=ctry&val=LOAN&scpe=13

The Factsheet is split into two areas - SALs (Sectoral Adjustment Loans) and Non-SALs. SALs are the more controversial of ADB loans as they aim to change the structure of an economic industry or sector. Often this means privatisation, de-regulation or liberalisation. The loans listed below include worrying objectives such as 'managing labour redundancies' and 'building acceptance for electricity price increases' and 'reducing state assistance to small businesses'.

Critics of the ADB believe this leads to faster natural resource depletion and environmental degradation.

Lobbying the ADB

Once a project is identified by agreement between a government and ADB, it is processed and implemented. The various steps from project identification to completion compose what is known as the project cycle. The ADB has a limited record of openness and consultation compared with the World Bank. NGOs can request information and consultation at any stage of specific project loans. For best results fax requests/complaints etc. on official headed letter paper, rather than e-mail.

The ADB Project Cycle is:

    1. Loan preparation
    2. Project examination
    3. Loan negotiations
    4. Project implementation
    5. Project completion
The ADB AGM is usually in May, at ADB Head Offices in Manila, Philippines or in other member countries.
For further lobbying information contact the ADB-NGO Monitoring Group and/or JANNI NGO Network in Japan

NGO Forum on the ADB
Contact: Takahario Nanri
E-mail: thnanri@jca.apc.org

JANNI, Japan NGO network
Contact: Sonoko Kawakami
E-mail: janni@jca.ax.apc.org
Tel. 0081 3 5818 0507
Fax. 0081 3 5818 0520



ADB Current SALs

The aims, contents and status plus further information on selected SALs are shown in Table 1. Quotes are from Project documents.

Other ADB - funded Projects (Non-SAL)

Some non-SAL loans from the ADB to GoI are listed in Table 2. In general these projects have much smaller budgets than SALs but, as their initial target areas are more localised the direct impacts on local communities and environments may be greater. Other projects will be included in a later Factsheet.

ADB Offices

IN INDONESIA
Resident Representative: Johannes P. Van Heeswijk
NGO Liaison: Shiladitya Chatterjee
Address: Gedung BRI 11, 7th Floor, Jl. Jend Sudirman Kav. 44-46, Jakarta 10210, Indonesia, P.O. Box JKSA
Telephone: (62-21) 5798-0600;
Email: adbirm@adb.org.

Web-sites: http://www.adb.org/Indonesia/default.asp
http://www.adb.org/IRM/default.htm

ADB ACTIVITIES IN INDONESIA: http://www.adb.org/IRM/activities.htm
LOAN APPROVALS: http://www.adb.org/IRM/PDF/ino01.pdf
LENDING PIPELINE: http://www.adb.org/irm/PDF/ino03.pdf
LOAN STATUS: http://www.adb.org/irm/PDF/ino05.pdf

HEAD OFFICE, PHILLIPINES
Address: 6 ADB Avenue, Mandaluyong City, Metro Manila, Philippines
Tel: (632) 632 5897
Fax: (632) 636-2684
Main web-site: http://www.adb.org



Table 1. ADB Sectoral Adjustment Lending to Indonesia

Loan Name
Number
Cost
Website Documents
Location
Sector
Aim
Approval date Estimated completion Date Contact in ADB
Power Sector Restructuring Program

Loan 31604-01
US$380m

http://www.adb.org/Documents/Profiles/LOAN/31604013.ASP

Java and Bali

Energy/Electric Power

Restructure Power sector through privatisation and deregulation

March 1999 December 2001 Anil Terway
Senior Power Sector Specialist
Tel. (632) 632 6412

E-mail: aterway@adb.org

State-Owned Enterprise (SOE) Governance and Privatisation Program

Loan 32517-01
US$200m
http://www.adb.org/Documents/Profiles/LOAN/32517013.ASP

Nationwide

Finance Sector/Privatisation

Make public sector efficient
Reduce cost of SOEs
Privatise SOEs in all sectors
Open all sectors to private sector

'Manage labour redundancies'

2000 Not available Klaus-Peter Kriegsmann
Financial Economist
Tel. (632) 632 6310

E-mail: kkriegsmann@adb.org

Capacity Building for Establishment of a Competitive Electricity Market
(Technical Assistance Loan)

Loan INO 31604-02
US$20m

http://www.adb.org/Documents/Profiles/LOAN/31604023.ASP

Nationwide

Energy/Electric Power

Develop a regulator for a private, competitive electricity sector

'Build acceptance for electricity price increases'

March 1999 April 2002 Anil Terway
Senior Power Sector Specialist
Tel. (632) 632 6412

E-mail: aterway@adb.org

Industrial Competitiveness and Small and Medium Enterprise (SME) Development Program

Loan INO 31644-01
US$200m

http://www.adb.org/Documents/Profiles/LOAN/31644013.ASP

Nationwide

Industry and No-fuel Minerals

Increase competition through de-regulation and liberalization

'Reduce state assistance to SMEs'

March 2000 September 2001 Klaus-Peter Kriegsmann
Financial Economist
Tel. (632) 632 6310

E-mail: kkriegsmann@adb.org



Table 2. ADB Non-Sectoral Adjustment Lending to Indonesia

Loan Name
Number
Cost
Location
Sector
Aim
Status Initially listed
Approved date
Estimated completion Date Contact in ADB, Jakarta
Marine and Costal Resources Management project

Loan 31153-01
US$50m

http://www.adb.org/Documents/Profiles/LOAN/31153013.ASP

Location not available

Agriculture and natural resources

Decentralise natural resource management

2000 Not available M. Jamilur Rahman
Senior Project Specialist
Tel. (632) 632 6914

E-mail: mjrahman@adb.org

Central Sulawesi Integrated Area Development and Conservation

Loan 29336-01
US$32m

http://www.adb.org/Documents/Profiles/LOAN/29336013.ASP

Central Sulawesi

Agriculture and natural resources

Promote sustainable development in ecologically sensitive areas

January 1998 March 2005 Siew Tuan Chew
Senior Poverty Reduction Co-ordinator
Tel. (632) 632 6708

E-mail: schew@adb.org

Community Empowerment for Rural Development

Loan INO 32367-01
US$115m

http://www.adb.org/Documents/Profiles/LOAN/32367013.ASP

Central Kalimantan, East Kalimantan South Kalimantan, Central Sulawesi North Sulawesi, Southeast Sulawsi

Agriculture and natural resources

Assist in decentralisation

Pay for degree training of 1773 staff of Directorate General of Rural Community Empowerment

Build roads

2000 Not available Antonio T. Perez
Senior Agronomist
Tel. (632) 632 6957

E-mail: aperez@adb.org

Coral Reef Rehabilitation and Management

Loan INO 29313-01
US$7m

http://www.adb.org/Documents/Profiles/LOAN/29313013.ASP

Riau, North Sumatra, West Sumatra

Agriculture and Natural resources

Rehabilitate and manage coral reefs to conserve bio-diversity

March 1998 Not available Peter N. King
Senior Project Specialist (Natural Resources)
Tel. (632) 632 5897

E-mail: peking@adb.org

Road Rehabilitation Sector

Loan INO33062-01
US$190m

http://www.adb.org/Documents/Profiles/LOAN/33062013.ASP

Southern Sumatra, Java and Kalimantan

Transport and communications
(Repair roads and bridges)

October 1999 September 2004 Patrick C. Giraud
Senior Transport Specialist
Tel. (632) 632 6765

E-mail: pgiraud@adb.org

Water Supply and Sanitation Sector

Loan INO 29448-01
US$100m

http://www.adb.org/Documents/Profiles/LOAN/29448013.ASP

Not available

Social infrastructure

Provide water and sanitation to urban poor

'introduce cost recovery' - introduce/increase charges for water

2001 Not available Allen Williams
Senior Urban Development Specialist
Tel. (632) 632 6784

E-mail: awilliams@adb.org




This IFI factsheet is published by Down to Earth, the International Campaign for Ecological Justice in Indonesia.

DTE IFIs updates and factsheets are available in English and Bahasa Indonesia.

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